Money and Cars

MAIN USE OF EQUITY RELEASE IS FOR HOME IMPROVEMENTS

Friday 13 July 2012

• Over 50s love their home so much they don’t consider moving
• Love for garden, close friends and treasured memories are the biggest reasons for staying put
• Over half of those using equity release spend it on home improvements

IT’S ON THE HOUSE - MAIN USE OF EQUITY RELEASE IS FOR HOME IMPROVEMENTS

Research for Saga shows that the over 50s treasure their homes so much they simply don’t want to move. Two in five (38%)* don’t want to leave their garden and friends and 22% couldn’t bear to part with their memories.

This explains why over half (56%)** of those using the Saga Equity Release Advice Service spend a proportion of the money to make home improvements. On average they release around £10,000 for this, which suggests the money is for more than just a lick of paint.

Further research from Saga shows over 3.7million*** over 50s could be planning significant alterations to their home over the next 12 months and the most popular alterations are new kitchens and bathrooms (31%)****. Nearly half (47%) of over 50s are making these major alterations to modernise their home. Many people want to increase the size of their home by either converting a loft to make room for their grandchildren (13%) or building an extension so they are better equipped for entertaining guests (10%).

Other reasons for releasing equity include clearing debts (32%), new cars (24%) and holidays (33%). It is likely to be for the holiday of a lifetime as on average they released around £6000 for this purpose.

Roger Ramsden, Chief Executive, Saga Services commented: “While releasing equity from the home isn’t for everyone, it can help people make improvements so they can stay in their home as they get older. This is evident from the one in ten over 50s who are adapting their home to suit their needs as they get older.”

The Saga Equity Release Advice Service is provided by Just Retirement Solutions and helps thousands of people every year see whether equity release is right for them.

ENDS

Notes to Editors

• *Populus interviewed 10,862 Saga customers, all aged 50+, online between 20th February and 27th February 2012. Populus is a member of the British Polling Council and abides by its rules• **Data from the Saga Equity Release Advice Service customers • ***There are 21million over 50s in the UK, our survey indicates 18% of people are planning major alterations in the next 12 months. 18% of 21million equals 3.7million.• ****Populus interviewed 10,319 Saga customers, all aged 50 and over, online between 9th and 15th March 2012. Populus is a member of the British Polling Council and abides by its rules.

Saga Equity Release Advice Service

• Equity release could offer homeowners aged 55 or over a way to release tax-free cash from their home to spend on whatever they choose.• A tax-free cash sum• Release cash when needed• Freedom to spend the cash• Expert equity release advice with no separate advice fee